Garbarino's 4,500 employees and 200 stores could not save it from $11 billion in debt

Garbarino was Argentina's largest electronics and home appliance retailer, operating more than 200 stores across the country with 4,500 employees. Founded by the Garbarino family, the chain dominated Argentine retail for decades. The crisis began in 2018 when Argentina's peso devaluation, high inflation, and rising interest rates crushed consumer purchasing power. By early 2020, Garbarino was already $4 billion in debt to banks and $7 billion to suppliers. The company was sold for a symbolic 1 peso to insurance group head Carlos Rosales.

COVID-19 devastated operations in 2020, with sales dropping up to 75% during peak months. A potential rescue sale to Facundo Prado collapsed in April 2021. In November 2021, Garbarino laid off 1,800 employees, closed most stores, suspended its e-commerce site, and filed for preventive bankruptcy. The company struggled for five years through the court process, unable to reach creditors or find an investor. The Pandora Papers revealed that founders Daniel and Omar Garbarino had set up an offshore structure in the Bahamas and BVI to hide $14 million.

On March 5, 2026, Commercial Court No. 7 declared Garbarino bankrupt and ordered the liquidation of all assets, including the Garbarino and Compumundo brands, two industrial plants in Tierra del Fuego that had been completely inactive, its financial arm Fiden, and its travel unit. At the time of the bankruptcy, only three stores remained open. The liquidation was ordered to cover the debts of creditors who had been waiting since 2021. The court cited the failure of the cramdown process and insufficient creditor support for the restructuring plan.